Fitch affirms ratings of three Hungarian banks
Fitch Ratings on Thursday affirmed the long-term Issuer Default Ratings (IDRs) of K&H Bank and Erste Bank Hungary at ʼBBBʼ and of CIB Bank at ʼBBB-ʼ, Hungarian news agency MTI reported today. The outlooks of the long-term IDRs are stable.
The affirmation of the IDRs "reflects Fitchʼs unchanged view of the ability and propensity of [the banksʼ] respective parents... to provide support, in case of need," according to the statement issued by the ratings agency.
Fitch also upgraded the banksʼ Viability Ratings (VRs) to ʼbb+ʼ from ʼbbʼ (K&H), to ʼb+ʼ from ʼbʼ (EBH) and to ʼbʼ from ʼb-ʼ (CIB).
The upgrades of the banksʼ VRs "reflect the stabilization of the operating and regulatory environments for Hungarian banks, resulting in decreased asset quality and profitability pressures," Fitch added.
K&H Bank is owned by Belgiumʼs KBC, Erste Bank Hungary is a member of Austriaʼs Erste Group, and CIB Bankʼs parent is Italyʼs Intesa Sanpaolo.
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